|
March
21, 2003
Proposed
Legislation Won’t Help Consumers
TCAIS
warns that CSSB 14 could prompt an availability crisis
| Tell
your legislators that CSSB 14 would take our state in
the wrong direction.
ACT
NOW!
See
how the number of companies doing business in Texas has
decreased substantially over the past decade. (PDF)
Chart
1 | Chart
2
|
Austin
- The Texas Coalition for Affordable Insurance Solutions
(TCAIS) warns that the committee substitute to Senate
Bill 14 will hurt Texas homeowners and drivers by creating
an even more unpredictable insurance market. TCAIS believes
the legislation approved by the Senate Business and Commerce
Committee yesterday does not address the underlying problems
in the Texas insurance market. CSSB 14 now moves to the full
Senate for a vote.
"At
this critical juncture in the insurance debate, legislators
need to focus on solutions that will draw more insurance companies
to the Texas market, ultimately generating more competitive
rates and more choices for consumers. This bill does not address
the core problem in the Texas homeowners insurance market,
a lack of companies willing to do business in the state,"
said TCAIS Director Beaman Floyd. "More onerous regulations
mean the current unpredictable conditions will only get worse.
This legislation will not help consumers, rather, it will
create even more trouble on the insurance horizon by further
threatening the availability and affordability of insurance
in Texas."
TCAIS believes that meaningful insurance reform
should give Texans more choices over the types of insurance
policies they can purchase at more competitive prices. The
current proposal threatens the stability of the Texas market
and for consumers the end result could mean fewer choices
among companies doing business in Texas.
"If
Texans want more choices in coverage and more affordable prices,
then the solution is to improve the market by giving insurance
companies the freedom to compete," Floyd said.
"Don’t
just get mad, get it right" is the message TCAIS has
been delivering to legislators. Texans deserve the full benefits
of a healthy competitive market with consumer protections
designed to make sure companies are financially healthy and
treat their policy holders fairly.
In
the News
New
Jersey Senate approves insurance reform plan
"Industry
officials have complained that strict regulations in the state
make it hard to turn a profit and companies that are losing
money are unable to get out of the market."
The Associated Press
March 20, 2003, Thursday
Trenton,
NJ - The Senate on Thursday approved an auto insurance reform
plan that Gov. James E. McGreevey says will eventually lower
rates.
The plan
is intended to boost competition among companies. State regulators
argue that if more agencies compete for business, rates will
eventually fall.
After
months of delay while lawmakers awaited McGreevey's proposal,
the Senate bill moved quickly through the Legislature in the
past week. It still must be approved by the Assembly.
Insurers were pleased the Senate acted quickly
on the bill.
“The
swift passage shows the consensus on the issue and bipartisan
support," said John Tiene of the Insurance Council of
New Jersey.
Industry
officials have complained that strict regulations in the state
make it hard to turn a profit and companies that are losing
money are unable to get out of the market.
Under current law, the process for an unprofitable
insurer to withdraw from the state's insurance market can
take seven to ten years.
In addition to easing some regulations, the
reform plan will raise rates for drivers with more the four
motor vehicle points. The bill also will expedite the rate
approval process and phase-out the "take all comers"
law that requires insurers to write policies for all drivers.
Quick action on the bill is needed so New
Jersey policy holders can find auto insurance coverage required
by law, said Banking and Insurance Commissioner Holly Bakke.
"I
want to thank the senators for realizing that the availability
problem in the marketplace warranted immediate attention,"
Bakke said.
About
TCAIS: TCAIS member companies include: Allstate Insurance
Company, American Insurance Association, Nationwide Insurance,
State Farm Insurance Companies and USAA.
Click
here for more information on TCAIS solutions: seven guidelines
for insurance reform in Texas. |
